FG Raises MSME Loan Limit to N5 Million at 9% Interest

Abuja, Nigeria – The Federal Government has increased the maximum loan amount accessible to Micro, Small, and Medium Enterprises (MSMEs) to N5 million under its single-digit interest rate scheme, aiming to promote inclusive economic growth.

This was disclosed by the Managing Director and Chief Executive Officer of the Bank of Industry (BoI), Dr. Olasupo Olusi, during a town hall sensitization event on Friday in Lagos. Represented by the Executive Director for MSMEs at BoI, Umar Shekarau, Dr. Olusi highlighted the introduction of the N200 billion Presidential Intervention Fund for MSMEs under President Bola Tinubu’s administration.

Out of this fund, N75 billion has been allocated specifically to MSMEs. The initiative, according to Dr. Olusi, is expected to create thousands of direct and indirect jobs across the nation. The loans, available at a nine percent interest rate over a three-year tenure, are being facilitated through the Bank of Industry.

Dr. Olusi urged eligible business owners to apply directly through the BoI or online without intermediaries to access the funds. He emphasized BoI’s commitment to transparency in disbursing the loans and grants, noting that over 800,000 Nigerians have already benefited from the scheme, including youth, women, and persons with disabilities.

“This initiative ensures that MSMEs, the backbone of the Nigerian economy, have access to much-needed financial support,” Olusi stated.

Increased Loan Ceiling

The Senior Special Assistant to the President on Job Creation and MSMEs, Temitola Adekunle-Johnson, announced an increase in the loan ceiling from the previous N1 million to N5 million. This adjustment aims to address challenges faced by small businesses, including access to finance and infrastructure.

Adekunle-Johnson explained that the increased funding aligns with President Tinubu’s commitment to cushioning the financial challenges experienced by small businesses.

Government Commitment to Economic Growth

Speaking at the event, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, represented by Ahmed Gazalli, outlined the government’s interventions to support MSMEs and the manufacturing sector. He emphasized the pivotal role of MSMEs in Nigeria’s economic growth, stating, “If we do not support our MSMEs to prosper, the Nigerian economy suffers.”

Edun reiterated the government’s dedication to empowering Nigerians through financial tools and resources for sustainable growth. He also applauded MSME operators for their contributions to Nigeria’s economic stability.

Similarly, the Minister of State for Industry, Trade, and Investment, Senator John Eno, pledged the government’s commitment to initiatives that enhance the welfare of Nigerians. He called for collaboration among stakeholders to eliminate barriers hindering MSME growth, stating, “It is such collaboration that can make it work.”